Marvell's Stock Drops Despite AI Demand Boost
Chip firm Marvell Technology's shares dropped 6% after its soft forecast, despite a surge in orders for AI networking equipment, due to ongoing weak demand from wireless and enterprise markets. Larger rival Broadcom also fell 2% as it maintained its annual forecast, despite predicting $10 billion in AI-related chip sales in 2024. Both companies are facing challenges from weak demand and inventory clearing by customers, impacting their market value.